Category Archives: Investment Banking in Sri Lanka

Monthly Economic Watch – October 2017

Content Briefing

  • Monetary Policy Review
  • IMF
  • Inflation
  • M2B & Sector Credit
  • Reserves & Liquidity
  • Currency Movement
  • Government Securities
  • Finance Sector Rate Movement
  • External Sector
  • Tourist Arrivals
  • Global Markets

Read the full report here: Monthly Economic Watch – October 2017

The comments on this report are provided by the Capital Markets Research Unit of First Capital Holdings PLC an investment bank in Sri Lanka.

The company operates in the capital markets of Sri Lanka proving services to invest in Sri Lanka through fixed income securities such as investments in government securities– treasury bills and bonds, stock brokering and share market investments, asset management, private wealth management, retirement planning, personal financial planning, unit trust, margin trading, capital market research, trustee services, corporate finance advisory services including corporate debt structuring (debentures, trust certificates, commercial papers), valuations, restructuring, mergers and acquisitions, initial public offerings (IPOs) and project advisory.

The First Capital Group consists of First Capital Treasuries PLC, First Capital Limited, First Capital Markets Limited, First Capital Asset Management Limited and First Capital Equities (Private) Limited covering Colombo, Negombo, Matara, Kandy and Kurunegala.

Sri Lankan shares snap winning streak, end lower on profit-taking

FIRST CAPITAL’S SENIOR RESEARCH ANALYST ATCHUTHAN SRIRANGAN SPEAKS TO REUTERS

OCTOBER 16, 2017

COLOMBO, Oct 16 (Reuters) – Sri Lankan shares snapped a winning streak to end lower on Monday, slipping from their highest close in more than 10 weeks hit in the previous session, with investors booking profits in financials, brokers said.

The Colombo stock index ended 0.55 percent weaker at 6,595.94, slipping from its highest close since July 31 hit on Friday. Last week, the bourse rose 1.6 percent, posting its fifth straight weekly gain.

“Today, we saw some profit-taking in the market,” said Atchuthan Srirangan, senior research analyst, First Capital Holdings PLC.

“But the good thing is that profit-taking happened in low volumes. Foreigners are calm and waiting to see a direction.”

Shares of Hatton National Bank ended 3.7 percent weaker, Commercial Bank of Ceylon Plc closed 2.7 percent down and Sampath Bank Plc finished 2.7 percent down.

John Keells Holdings Plc ended down 0.2 percent.

Turnover was 394.9 million rupees ($2.57 million), less than half of this year’s daily average of 937 million rupees.

Foreign investors were net buyers of shares worth 3.3 million rupees on Monday, extending the year-to-date net foreign inflow to 20.2 billion rupees worth of shares so far this year.

The comments on this report are provided by the Capital Markets Research Unit of First Capital Holdings PLC an investment bank in Sri Lanka.

The company operates in the capital markets of Sri Lanka in government securities – treasury bills and bonds, stock brokering and share market investments, asset management, private wealth management, retirement planning, personal financial planning, unit trust, margin trading, capital market research, trustee services, corporate finance advisory services including corporate debt structuring (debentures, trust certificates, commercial papers), valuations, restructuring, mergers and acquisitions, initial public offerings (IPOs) and project advisory.

The First Capital Group consists of First Capital Treasuries PLC, First Capital Limited, First Capital Markets Limited, First Capital Asset Management Limited and First Capital Equities (Private) Limited covering Colombo, Negombo, Matara, Kandy and Kurunegala.<

First Capital team participates at “Invest Sri Lanka” Investor Forum – New York

Invest Sri Lanka NY 2017 2
The First Capital Team participating at ‘Invest Sri Lanka Forum – New York’ Director / CEO Dilshan Wirasekara, CEO of First Capital Equities Jaliya Wijeratne, Head of Research Dimantha Mathew and Assistant Manager Foreign Sale Ifadh Marikar.

 

The “Invest Sri Lanka Investor Forum” organized by the Colombo Stock Exchange (CSE) and the Securities and Exchange Commission of Sri Lanka (SEC) in association with stock brokers in Sri lanka (CSE Member Firms) and leading listed companies was held yesterday (October 16) at the Sofitel New York receiving an unprecedented response from the Investor Community in New York.

The Invest Sri Lanka Investor Forum series is steered with the objective of promoting investment in Sri Lanka among institutional investors and to build strong interest among the investor community based in key global financial hubs.

CSE’ decision to host the Invest Sri Lanka event in New York, comes on the back of considerable foreign activity in share market investments in Sri Lanka during 2017. There has been a net foreign inflow of Rs. 40 billion recorded year-to-date in the primary and secondary markets.

“Foreign investors have shown confidence towards investing in Sri Lanka as they feel that most counters are undervalued and offer significant upside in the medium term” commented the Director/Chief Executive Officer of First Capital during an interview given in early September 2017.

Invest Sri Lanka NY 2017

Nishan de Mel joins First Capital Board

Published on Daily FT | 2017-10-17

Dr. Nishan de Mel has been appointed as an Independent Non-Executive Director of First Capital Holdings Plc.

He is an economist with extensive academic policy and private sector experience currently serving as Executive Director and Head of Research at Verite Research Ltd. Dr. de Mel has held several governing, teaching and research positions internationally, including as a Lecturer in Economics at Oxford University.

He also served as a Member of the Presidential Task Force on Health Sector Reform, the Presidential Committee on Tobacco, Alcohol and Dangerous Drug Regulation, the National Steering Committee on Social Security and as Executive Director of the International Centre for Ethnic Studies and the Board of the Sri Lanka Foundation. Dr. de Mel sits on multiple private sector boards and consults regularly as a strategist for some of the region’s largest firms.

With the appointment the Board of Directors of First Capital Holdings Plc comprises N. Fernando (Chairman), D. Schaffter (Managing Director), D.G. Wirasekara (CEO/Director), A.D.E.I. Perera, M.D.A. Perera, Chandana L de Silva and N.C. de Mel.

MARKET OVERVIEW ON CHANNEL EYE’S BUSINESS TODAY – 04.10.2017

Stock-Brokers-in-Sri-Lanka

First Capital’s Dimantha Mathew with the Market Review on Channel Eye’s Business Today Program

The comments on this report are provided by the Capital Markets Research Unit of First Capital Holdings PLC an investment bank in Sri Lanka.

The company operates in the capital markets of Sri Lanka in government securities – treasury bills and bonds, stock brokering and share market investments, asset management, private wealth management,  retirement planning, personal financial planning, unit trust, margin trading, capital market research, trustee services, corporate finance advisory services including corporate debt structuring (debentures, trust certificates, commercial papers), valuations, restructuring, mergers and acquisitions, initial public offerings (IPOs) and project advisory. 

The First Capital Group consists of First Capital Treasuries PLC, First Capital Limited, First Capital Markets Limited, First Capital Asset Management Limited and First Capital Equities (Private) Limited covering Colombo, Negombo, Matara, Kandy and Kurunegala.

Turnover and Volumes Decline at CSE

Published on Hiru Business News | 13 October 2017

Trading at the Colombo Stock Exchange ended on a mixed note today (13), with low retail participation. The All Share Price Index moved up by 10.74 points to close the day at 6,632.30 while S&P SL20 shed by 2.22 to 3,915.42.

Turnover was Rs. 688.5 million while 30.5 million shares were traded.

A low foreign participation led to a marginal net foreign inflow to the market.

Read the Performance Review & Expectations here.

MARKET UPDATE ON ADA DERANA ENGLISH NEWS – 15.10.2017

Stock-Brokers-in-Sri-Lanka

First Capital’s Dimantha Mathew with the Market Review on Ada Derana

The comments on this report are provided by the Capital Markets Research Unit of First Capital Holdings PLC an investment bank in Sri Lanka.

The company operates in the capital markets of Sri Lanka in government securities – treasury bills and bonds, stock brokering and share market investments, asset management, private wealth management,  retirement planning, personal financial planning, unit trust, margin trading, capital market research, trustee services, corporate finance advisory services including corporate debt structuring (debentures, trust certificates, commercial papers), valuations, restructuring, mergers and acquisitions, initial public offerings (IPOs) and project advisory. 

The First Capital Group consists of First Capital Treasuries PLC, First Capital Limited, First Capital Markets Limited, First Capital Asset Management Limited and First Capital Equities (Private) Limited covering Colombo, Negombo, Matara, Kandy and Kurunegala.

Sri Lankan shares rise for 4th session; beverage, diversified stocks up

FIRST CAPITAL’S SENIOR RESEARCH ANALYST ATCHUTHAN SRIRANGAN SPEAKS TO REUTERS

OCTOBER 13, 2017

COLOMBO, Oct 13 (Reuters) – Sri Lankan shares rose for a fourth straight session on Friday and posted their highest close in more than 10 weeks, as investors bought beverage and diversified stocks, brokers said.

The Colombo stock index ended 0.16 percent firmer at 6,632.30, its highest close since July 31. It rose 1.6 percent this week in its fifth straight weekly gain.

“This week we have seen a big rally and today we saw some profit-taking, but the market ended firmer on the continued bullish trend,” said Atchuthan Srirangan, a senior research analyst with First Capital Holdings PLC.

Shares of Ceylon Cold Stores Plc ended 3.2 percent firmer, Lion Brewery (Ceylon) Plc rose 6.0 percent and John Keells Holdings Plc ended up 0.2 percent.

Turnover was 688.4 million rupees ($4.48 million), less than this year’s daily average of 937 million rupees.

Foreign investors were net sellers of shares worth 8.8 million rupees on Friday, after having bought 3.7 billion rupees of equities in the 16 sessions through Tuesday. They have net bought 20.2 billion rupees worth of shares so far this year. ($1 = 153.7000 Sri Lankan rupees) (Reporting by Ranga Sirilal; Editing by Subhranshu Sahu)

The comments on this report are provided by the Capital Markets Research Unit of First Capital Holdings PLC an investment bank in Sri Lanka.

The company operates in the capital markets of Sri Lanka in government securities – treasury bills and bonds, stock brokering and share market investments, asset management, private wealth management,  retirement planning, personal financial planning, unit trust, margin trading, capital market research, trustee services, corporate finance advisory services including corporate debt structuring (debentures, trust certificates, commercial papers), valuations, restructuring, mergers and acquisitions, initial public offerings (IPOs) and project advisory. 

The First Capital Group consists of First Capital Treasuries PLC, First Capital Limited, First Capital Markets Limited, First Capital Asset Management Limited and First Capital Equities (Private) Limited covering Colombo, Negombo, Matara, Kandy and Kurunegala.<

First Capital’s A- rating reaffirmed by ICRA Lanka

The issuer rating of SL[A-] with stable outlook was reaffirmed for First Capital Holdings PLC (First Capital) by ICRA Lanka Limited, a subsidiary of ICRA Limited, a group company of Moody’s Investors Service.  ICRA Lanka also reaffirmed the issuer rating [SL]A- with stable outlook for First Capital’s standalone primary dealer First Capital Treasuries PLC.  

Investment banks in Sri Lanka, Investment banking in Sri Lanka, Investment companies in Sri Lanka, Share market Investment in Sri Lanka
Investment banks in Sri Lanka, Investment banking in Sri Lanka, Investment companies in Sri Lanka, Share market Investment in Sri Lanka

First Capital Holdings PLC is the holding company for other entities in the financial services space, engaged in making investments and managing its subsidiaries i.e. First Capital Treasuries PLC an authorised Primary Dealer in Government Securities, First Capital Limited involved in structuring and placement of corporate debt and corporate finance advisory services and investments, First Capital Asset Management Limited involved in unit trust and portfolio management; First Capital Markets Limited involved in providing margin trading facilities and dealing and broking of listed debts, First Capital Trustee Services (Pvt) Limited a trustee services provider for corporate debt securities and First Capital Equities (Pvt) Limited engaged in stock broking activities.

However, First Capital Treasuries accounts for 70% of the consolidated assets and 80% of the consolidated net trading income of First Capital for FY2017. The ratings take note of First Capital’s efforts to expand the business and financial performances of the other subsidiaries, which are engaged in corporate debt structuring, corporate finance, asset management, stock broking, extending margin trading facilities and trustee services; however their scale of operations continues to remain moderate. First Capital’s borrowings are largely short term in nature and are used for investment and lending to group entities. The rating factors the First Capital group’s established relationships with banks and financial institutions, providing access to funding. Further, ICRA Lanka expects timely funding support from First Capital Treasuries, considering the liquid nature of its assets.

First Capital, being a holding company derives its income from the dividends from the group entities and income from its investments, which includes interest income and profit from investments. For the FY2017 stand-alone income from investment activities improved (LKR 774 Mn total income in FY2017 vis-a-vis LKR 336 Mn in FY2016), while the share of profit from Subsidiaries increased steeply (LKR 194 Mn in FY2017 vis-à-vis 14 Mn in FY2016).

Government Securities Market Weekly Summary

Published on Ceylon Today | 2017-10-11

By First Capital Research

The market registered moderate trading activity in mid tenors, recording buying interest led by 2021 & 2025 maturities as yields dipped by 5bps amidst foreign buying. Shorter tenors stayed broadly flat throughout the week, following a steep rise in yield in last Tuesday’s (3) bill auction where 1 Year Bills surged to 9.32% as against 9.10% the previous week.

Liquidity & CBSL holdings

CBSL Holdings saw a slow rise during the week, followed by the funding gap created last week with Rs 23 billion maturities and acceptance in the bill auction falling to Rs 13 billion. In line, the system also experienced a rise in liquidity towards Friday and Monday. However, a sudden dip in liquidity was noted on Tuesday (10).

Foreign Interest

Foreign interest in Government securities has been relatively steady during the past few weeks, while last week the market also experienced a net foreign inflow of LKR 2 billion marginally, increasing the foreign holding to 6.02% from 6.00% in the previous comparative week.

Maturities for the week

The Government securities market has Treasury Bill maturities on LKR 23 billion, which needs to be settled on 13 Oct 2017. Further, the Government also needs to settle LKR 2.8 billion of Treasury Bond interest due 15 Oct 2017, which will be settled on 13 Oct 2017, the last working day for settlement.